WGU - C201 Chapter 15 and 16 accurate 100%(SCORED A+)

Financial Statements - ANSWER Transactions are accumulated and categorized Different kinds of financial statements - ANSWER Balance sheet, Income statement, statement of owners equity and statement fs of cash flows Income Statement - ANSWER Used by the manager to understand the revenue or sales. The expenses and profits of the organization for a period of time. Expenses - ANSWER What you have spent on non product related things Cost of Sales - ANSWER What you spend directly on your product. This is different than expenses. Sales - ANSWER What you sold to customers Gross Profit Margin - ANSWER (Gross profit)/Sales Profit - ANSWER What you have left after you've recognized all of your expenses. Income statement has the following elements - ANSWER Sales, Cost of sales, gross profit, expenses and profits Balance Sheet - ANSWER Split into two different sides. The left side is what you have, the right side is what you owe. This is the ONLY permanent statement! Left side of balance sheet - ANSWER Assets in descending order from most liquidable to least Right side of balance sheet - ANSWER Current liabilities on top sorted by due date Statement of Cash Flows - ANSWER Tracks the flow of cash generated and spent over a specific period of time Statement of Cash Flows contains - ANSWER Operating, financing and investing activities. Also depreciation. Depreciation - ANSWER also on the statement of cash flows, systematically reduce the value of an asset over time. It is recorded as an expense. Recorded as Non-cash.